INCOME TAX SURVEYS AT NINE MAJOR BITCOIN EXCHANGES IN INDIA

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The Hush Post: The Income Tax Department on Wednesday conducted surveys at major Bitcoin exchanges across India on doubts of tax evasion. Various teams of the department, under the command of the Bengaluru investigation wing, visited the premises of nine exchanges in Delhi, Bengaluru, Hyderabad, Kochi and Gurugram today. The surveys are being carried out under section 133A of the Income Tax Act. The reason for these surveys is to “gather evidence to find out the identity of investors and traders, transaction undertaken by them, identity of counterparties, related bank accounts used, among others,” the sources said. The teams are armed with various financial data and inputs about the working of these exchanges and this is the first big action against them in the country. Bitcoin, a virtual currency, is not regulated in India and its circulation has been a cause of concern among central bankers the world over for some time now.

The Reserve Bank of India has cautioned the users, holders and traders of virtual currencies, including bitcoins. Bitcoins is a cryptocurrency and universally accepted system of payment among individuals. Though, not all governments have given validity to it.

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